Investing.com - It’s not all fun and games at Activision Blizzard (NASDAQ:ATVI). The videogame maker slipped 7% midday amid reports that the company is planning to lay off hundreds of employees.
The layoffs, first reported by Bloomberg on Friday, is in response to sluggish sales as the company faces steep competition and a decline of brick-and-mortar sales.
The company’s struggles started earlier in January when it announced it was spilling from game studio Bungie, which developed the popular “Destiny” franchise.
Elsewhere in the sector, Zynga (NASDAQ:ZNGA) fell 0.3%, while Take-Two (NASDAQ:TTWO) slipped 3%. Electronic Arts (NASDAQ:EA) rose 5%, while GameStop (NYSE:GME) lost 1%.